Jun 30, 2020

Main Street Capital Q2 2020 Earnings Report

Main Street Capital reported a decrease in net investment income and distributable net investment income, but an increase in net assets resulting from operations compared to the same quarter last year.

Key Takeaways

Main Street Capital Corporation announced its financial results for the second quarter of 2020, featuring a net investment income of $0.48 per share and distributable net investment income of $0.52 per share. The company's net asset value stood at $20.85 per share. Despite economic challenges, Main Street saw success in lower middle market and private loan investment activities.

Net investment income was $31.3 million, or $0.48 per share.

Distributable net investment income was $34.1 million, or $0.52 per share.

Total investment income reached $52.0 million.

The company completed $84.6 million in total lower middle market portfolio investments.

Total Revenue
$52M
Previous year: $61.3M
-15.2%
EPS
$0.48
Previous year: $0.63
-23.8%
Net Asset Value per Share
$20.9
Middle Market Fair Value
$411M
Middle Market Portfolio Count
44
Cash and Equivalents
$68.5M
Total Assets
$2.55B

Main Street Capital

Main Street Capital

Main Street Capital Revenue by Segment

Forward Guidance

Main Street anticipates navigating the economic environment and the effects of the COVID-19 pandemic, and aims to complete the transaction making the External Investment Manager the sole adviser and administrator to HMS Income.

Positive Outlook

  • Prioritizing the health and well-being of employees and portfolio companies' employees.
  • Selectively executing on new investment opportunities.
  • Actively supporting portfolio companies.
  • Conservative capital structure.
  • Significant liquidity position.

Challenges Ahead

  • Challenging economic environment due to COVID-19 pandemic.
  • Potential impacts of COVID-19 on business and operations.
  • Potential impacts of COVID-19 on liquidity and access to capital.
  • Potential impacts of COVID-19 on the U.S. and global economies.
  • Changes in laws and regulations or business, political and/or regulatory conditions.